Federal National Mortgage Association (FNMA) shares pushed meaningfully higher on Monday morning after billionaire investor Bill Ackman declared them “stupidly cheap” in a viral post on X.
Strengthening the bullish sentiment this morning is technical momentum as FNMA vaulted above its 20-day moving average (MA), flipping key trend signals back in favor of the bulls.
That said, Fannie Mae shares remain down more than 35% versus the start of this year.
What Ackman’s Remarks Mean for Fannie Mae Stock
In his social media post, Bill Ackman dubbed FNMA shares a 10x opportunity, adding their current valuation represents “asymmetry at its best.”
His bold stance reframes investor perception, setting up a foundation for Fannie Mae to finally rise above regulatory overhangs that have long been a drag on its stock price.
Ackman’s vote of confidence is bullish because when a high-profile hedge fund manager signals deep value, it often draws attention from momentum traders, value investors, and speculators.
Over time, this leads to a boost in interest that drives the company’s stock price higher.
Are FNMA Shares Worth Buying Today?
Investors are running into Fannie Mae stock also because of growing speculation that the mortgage giant may formally exit government conservatorship under the Trump administration.
Investors are betting on a re-listing strategy that would transition FNMA from over-the-counter (OTC) markets back to a major exchange like the NYSE.
Such a maneuver will require a massive recapitalization and potentially a partial initial public offering (IPO), which could unlock billions in trapped value for common shareholders.
As the FHFA moves toward a utility-type model, the prospect of Fannie Mae operating as a private, dividend-paying entity once again is the ultimate bullish catalyst for its investors.
Note that FNMA’s relative strength index (14-day) sits at 56 currently, signaling significant further room to the upside.
What’s the Consensus Rating on Fannie Mae?
Wall Street also remains bullish as ever on the Federal National Mortgage Association for the next 12 months.
According to Barchart, the consensus rating on FNMA stock is “Moderate Buy,” with the mean target of about $13, indicating potential upside of a whopping 90% from here.
On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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